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| Taco Bell is testing Coffee Chillers & Churro Chillers, their first frozen coffee and shake beverages, available in California from Dec. 15. “We are constantly listening to what our fans are craving next and we are thrilled to offer them a frozen creation that’s just as delicious and desirable as their favorite menu item,” said Taylor Montgomery, Taco Bell's U.S. chief marketing officer. The items are available at two restaurants in California for a limited time while supplies last, starting Dec. 15. |
| Taco Bell’s testing of new frozen beverages aligns with the growing trend of specialty beverages, fueled by McDonald’s CosMc’s concept and rising chains like Dutch Bros. Gen Z is now ordering more cold coffee than hot coffee, and chains like Starbucks now generate most of their sales through cold coffee options. In 2022, cold beverage sales grew at a rate of nearly 15%. |
| KFC Costa Rica launched a new ad campaign showcasing its night shift workers catching daytime sleep, aiming to resonate with late-night fried chicken fans. Print ads and billboards depict employees in KFC uniforms dozing off on couches, tables, and beds illuminated by daylight. Crafted by Havas Costa Rica and Republica Havas, the initiative highlights the unseen dedication behind the beloved chicken flavor. Josafat Padilla, chief creative officer of Havas Costa Rica, emphasized a focus on creativity, reflecting the effort given by late night workers every day. |
| How Yum! Brands is making its supply chain more sustainable |
| As global leaders and companies come together at COP28 to keep climate action front-and-center, Yum! and our brands are doing our part. But we know we can’t do it alone and is why we’re working alongside our suppliers to make the planet greener. |
| Pizza Hut ensures everyone gets an equal slice |
Around the world, Pizza Hut is fueling employability, entrepreneurship and educational programs through its Equal Slice for Everyone social purpose framework. In partnership with Yum!’s Unlocking Opportunity Initiative, they’re changing the future for people in Brazil, Canada, Indonesia, South Africa, Sri Lanka, the United Kingdom and the United States. |  | (For Yum! Eyes Only) |
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| Chipotle’s Cultivate Next fund is allocating $50 million to two eco-friendly tech investments, Greenfield Robotics and Nitricity. Greenfield Robotics are the creators of AI-driven weed-cutting robots fostering herbicide reduction and soil preservation. The funding aims to expand robot capabilities for tasks like spraying or soil testing. Nitricity is a “New Age fertilizer” company aiming to reduce greenhouse gas emissions by 5-10 times compared to traditional fertilizers. Chipotle’s CFO sees Nitricity's innovation aligning with their Food With Integrity approach and offering cost-effective, eco-friendly solutions. |
| McDonald’s $200 million "marketing war chest" has been on overdrive since Q2 2020. Initiatives like Famous Meals, Crocs and a VIP card aim to capture Gen Z attention, boosting sales and market share. To improve marketing consistency, "One McDonald’s Way" was established, focusing on universal “fan truths” and global impact ideas. ROI gains via better testing methods align with plans to expand their loyalty program's personalization. Hypotheticals include limited-time subscriptions and exclusive merch, hoping to engage customers through physical and digital channels. |
| Papa John's appointed The Martin Agency as its national creative agency and Carat U.S. as its national media agency starting January. Both agencies pitched strategies focusing on relevance, audience targeting, loyalty and cultural impact. Papa John's seeks performance-driven media buying by Carat, emphasizing "people-based marketing," while The Martin Agency plans an omnichannel campaign to redefine pizza perception. CMO Mark Shambura praises the agencies' alignment with Papa John's goals and prioritization of diversity as he aims to differentiate Papa John's amidst fierce pizza competition, with Pile and Company managing the agency review. |
| Starbucks is introducing a new holiday-themed iced drink: the Merry Mint White Mocha, available for a limited time this holiday season. It features Starbucks Signature espresso with white chocolate sauce, milk and ice, and then is topped with Peppermint Chocolate Cream Cold Foam and chocolate curls. From December 12-25, packaged coffee and merchandise are 50% off, from cold cups and tumblers to mugs and ornaments. |
| Boston Market owner Jay Pandya filed for personal bankruptcy amid mounting lawsuits from vendors, franchisors and employees over unpaid bills. Engage Brands, under Pandya’s leadership, acquired Boston Market in 2020, aiming to revive the struggling company. However, ongoing troubles persisted: headquarters seized for unpaid taxes, multiple lawsuits for debts, closures and labor payment issues surfaced. Legal battles, including an $11 million claim from Pizza Hut, and orders to pay suppliers exemplify the challenges. Pandya’s bankruptcy raises questions about financial obligations, while Boston Market’s precarious situation remains uncertain with dwindling locations. |
| BurgerFi International and Anthony’s Coal Fired Pizza & Wings announced the opening of their first-ever co-branded BurgerFi and Anthony’s restaurant. Operated by NDM Hospitality, the new location at the Margaritaville Resort Orlando offers a dual dining experience, combining burgers, fries, shakes with coal-fired pizza and wings. This strategic fusion aims to cater to diverse preferences, enhance the dining experience, and exhibit the brand’s innovative approach while offering various ordering options and expanding growth opportunities for franchisees. |
| The quick-service restaurant industry faces both opportunities and challenges in 2024. COVID-19 accelerated trends like mobile ordering, with a projected growth of $13.297 billion by 2031. Challenges persist, including hiring difficulties, inflation and shifting consumer spending habits. Innovating through technology integration, menu diversity and space redesign offers growth avenues. Adapting to changing consumer preferences, emphasizing sustainability and maintaining strong branding are crucial. Operators should strategize based on their strengths, embracing adaptability to navigate the evolving landscape for lasting success. |
| Federal labor regulators accused Starbucks of unlawfully closing 23 stores to suppress unionizing efforts and demanded their reopening. The National Labor Relations Board alleged closures aimed to deter union activity, affecting seven unionized stores. Starbucks faces numerous accusations of labor law violations during a two-year campaign. Over 100 complaints highlight threats against union-involved workers and failure to negotiate. The case proceeds to an administrative judge, seeking store reopenings and compensations for affected employees. Starbucks contests claims, stating routine evaluations of store portfolios. |
| An independent assessment advised Starbucks to strengthen guidance on disciplining workers amid ongoing store unionizations. Shareholder-requested, it found no covert anti-union efforts but pointed to Starbucks’ unpreparedness for union pushes, attributing missteps to inexperienced staff. Workers United’s adept organizing led to a narrative of Starbucks being anti-union. The report suggests refining Starbucks’ human rights commitment and clarifying compliance guidance. Starbucks’ board pledges action based on the findings, yet Workers United notes deep-seated issues. Over 100 complaints accuse Starbucks of anti-union tactics; the company contests wrongdoing. |
| AI adoption in the quick-service industry can lead to hyper-personalization that fosters customer loyalty and streamlines operations. In back-of-house operations, AI can help to optimize staffing, inventory, and training, combating labor shortages. Enhanced customer experiences include AI-infused ordering for personalized menu suggestions. As AI proliferates, expect increased use for tailored experiences and security measures. This technology revolutionizes marketing, streamlines operations, and shapes customer engagement, establishing AI as the backbone for growth in the quick-service industry. |
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